Singapore Car Rental Company Lumens Adapts to New VEP Requirements

As the Malaysian government announced that it would be mandatory for foreign-registered vehicles entering the country from Singapore to have a Vehicle Entry Permit (VEP) starting from October 1, Lumens, a Singapore car rental company, swiftly took action to register its fleet of cars.

Registration Process

  • Lumens began the registration process in May and it took around three months to register its fleet of more than 5,000 rental cars for VEP.
  • The company has three dedicated employees responsible for handling the applications and ensuring that digital confirmation slips are provided to the hirers of the vehicles.

Types of Hirers

The rental cars from Lumens are utilized by a wide range of customers, including drivers of ride-hailing services, tourists, and individuals needing a vehicle for business or personal use.

VEP Requirements

  • Rental cars are considered vehicles for commercial use and do not require the installation of a radio frequency identification (RFID) tag like private cars.
  • The application confirmation slip serves as proof that the rental car is VEP-registered.

Association Involvement

The Vehicle Rental Association (VRA), consisting of around 50 rental companies in Singapore, has reported that approximately 60% of its members’ rental cars are now VEP-registered and can enter Malaysia on October 1.

Recent Updates

  • Malaysia’s Road Transport Department announced that foreign-registered vehicles without VEP tags can still enter the country after the October 1 deadline.
  • Vehicle owners may receive reminders for VEP registration and warnings upon exiting Malaysia if the tag is not installed.

Registration Process for Rental Cars

Unlike private cars, rental vehicles do not need to be linked to the Touch ‘n Go app for toll payment, and drivers must use the physical Touch ‘n Go card for tolls if they only have the registration confirmation slip.

Challenges Faced

Lumens encountered difficulties with around 1,000 cars in its fleet that were previously VEP-registered by the previous owners. The permits are non-transferable, requiring Lumens to contact the Malaysian government agency for deregistration before reapplying.

Overall, Lumens and other rental companies have successfully navigated the VEP registration process to ensure compliance and seamless operations for their customers.

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